Which scenario best illustrates a breach of consumer law?

The scenario that best illustrates a breach of consumer law is the situation where a business provides exaggerated claims about product benefits. Under New Zealand consumer law, specifically the Fair Trading Act 1986, businesses are prohibited from making misleading or deceptive representations about the products or services they offer. This includes exaggerating the benefits or effectiveness of their products, which can mislead consumers into making purchases based on false or inflated expectations. Such practices undermine consumer trust and violate the principle of fair trading, making this scenario a clear breach of the law.

In contrast, issuing a recall of faulty products demonstrates a company’s compliance with consumer safety standards and reflects a responsible approach to protecting consumers. Similarly, a consumer being able to easily return a faulty item signifies that the retailer is honoring consumer rights, such as those outlined in the Consumer Guarantees Act, which provides protections against defective goods. Finally, offering promotions during holidays typically aligns with fair trading principles, as long as the promotions are not misleading or deceptive.